In a shocking revelation, Toyota Motor’s subsidiary, Daihatsu, has ceased all vehicle shipments globally after an investigation into a safety scandal uncovered issues in 64 models, including 22 under the Toyota brand, far surpassing initial estimates.
The independent panel, formed in response to Daihatsu admitting to rigging side-collision safety tests for 88,000 small cars, has exposed widespread irregularities, threatening the reputation of both automakers.
Toyota emphasizes the need for “fundamental reform” to rejuvenate Daihatsu, acknowledging the enormity of the task, encompassing a review of management, business operations, and organizational structure.
Reports indicate Daihatsu manipulated safety tests for nearly all current production models and some from its past lineup. The whistleblower-triggered investigation revealed serious flaws in safety testing procedures.
As Toyota commits to addressing the issue, Daihatsu, responsible for 40% of production overseas, faces challenges in restoring public trust, contributing to 7% of Toyota’s overall sales.
This safety scandal underscores the urgent need for Daihatsu’s revamp and poses a critical test for Toyota in ensuring the integrity and safety of its extensive lineup. The repercussions of this unprecedented event are sure to reverberate throughout the automotive industry.